DraftKings and FanDuel labelled illegal under proposed Ohio law
SB356 to define traditional DFS contests as games of chance
Ohio Senator Bill Coley has introduced a bill that would label DFS games that charged commission as games of chance and therefore illegal under Ohio law.
Coley pointed out that betting pools are allowed under state law, but only when operators pay out at least 100% of the entry fees as prizes, which DFS contest donât.
Under Coleyâs SB356, the Ohio Casino Control Commission would be also put in charge of pools that did return 100% of entry fees to players.
Senator Coley said that he did not want to prohibit these contests because they are often for charitable purposes. However if the operator of such a pool does charge a rake, Coley said, they âwill have to change the business model.â
“When you’re taking a rake off the top, you’re breaking the law and you need to stop doing that in the state of Ohio,” said Coley.
Coley said people need to understand that playing daily fantasy contests can be like gambling at a casino.
“[Operators] want to deny reality and they donât want to change their model because itâs very profitable,” he said. âWe’ve crafted legislation so all those in Ohio who are interested in fantasy sports continue in these activities.”
The prospects for the bill are still unclear, but could face pushback from the main operators and even the state Attorney General.
DraftKings and FanDuel said in a statement: âSen. Coley is completely on an island â isolated from Ohioans who love fantasy sports and isolated from his caucus where he has no support for his attempt to ban fantasy sports.â
The news also follows an advisory opinion from Ohio AG Mike DeWine’s office back in June, which said the AG did not have the authority to order DFS companies to stop operating in the state.